Impact of foreign investors on the Norwegian market
Abstract
This paper seeks to answer the impact of foreign acquisitions on listed companies
in the Norwegian market. Over the period of 2003-2018 we found 44 Norwegian
listed companies with our specific limitations which had been exposed for crossborder
acquisition. Looking at trends and firm performance for two samples,
acquired and non-acquired firms, we try to investigate the effects a foreign investor
has on the Norwegian market. We use the performance measures ROE and ROA,
and the characteristic measures size and leverage. We find evidence that firms with
weak size are more likely to be acquired by foreign investors. We do not find
evidence that firm performance change after acquisition. Due to lack of statistical
significance in firm performance we cannot conclude on the impact foreign
investors have on the Norwegian market, but we see trends towards similar research
articles.
Description
Masteroppgave(MSc) in Master of Science in Finance - Handelshøyskolen BI, 2022